Market Analysis Of The US'S Suspension Of US $370 Billion Tariff Increase

Washington (Reuters) - on January 29 local time, the Biden administration of the United States will reassess the national security measures adopted by former president trump, including the first phase of Sino US economic and trade agreement, according to Washington, Reuters.

The report quoted U.S. government sources as saying that the Biden administration will suspend the implementation of the U.S. measures to impose tariffs on US $370 billion of Chinese goods during the evaluation period, until the comprehensive assessment is completed and the United States finds out the best way to unite with China with other countries before deciding what changes to make.

All trump policies need to be reassessed

According to the report, in response to a question on whether the first phase of the Sino US economic and trade agreement is still valid, White House press secretary Jane pusaki said at a regular White House press conference on January 29, local time: "all the measures related to national security introduced by the former government should be reassessed, and it is not necessary to assume that they will continue to advance.".

According to reports, pusaki said the Biden administration will focus on handling Sino US relations in a strong position, which means that the United States should "coordinate and communicate with our allies and partners on how to deal with China".

China US relations "turned over"?

Since the United States has officially entered the Biden era, it is difficult to restart the troubled Sino US relations immediately. However, analysts believe that the "freezing point" relationship will be eased. Under the general direction of pressure, competition and cooperation, the economic and trade field will become an easy to repair zone.

Analysts pointed out that, considering that the new Biden administration will first start the epidemic control and economic recovery of the United States, the common interests of China and the United States in the fields of trade, humanities and global governance will become a favorable factor for the bilateral relations to be eased, especially in the economic and trade fields. In the post epidemic era, the two sides are expected to strengthen trade and investment cooperation and even start a new dialogue. During this period, it is not ruled out that there will be a certain degree of exploratory period.

A reassessment of China's trade agreements is also giving them a breathing space. However, according to Biden's previous statements, their China policy will not be very different from that of trump during his term of office, and even if there is a change, they will "change the soup without changing the dressing". According to former US Secretary of state Abraham Lincoln's statement, the US side will continue to take a tough attitude towards China. Therefore, it is expected that after the "suspension strategy" of the United States, the United States is likely to make a "big move" against China with other countries. Therefore, China should be prepared to meet various challenges from the United States.

Multiple profits, bulk textile raw materials may rise again after the festival

The new outbreak has a devastating impact on the global economy and oil demand, and its impact is far greater than any financial crisis or economic crisis in human history. After being affected by the epidemic situation in China in the first half of this year, with the start of the domestic dual cycle economy, China's textile economy still ushered in a strong recovery in the second half of this year, with a growth rate of 9.6% against the trend, even under the obstruction of US trade barriers! According to the latest data released by the General Administration of customs, in 2020, China's textile and garment exports totaled US $291.22 billion, ending with a good performance of 9.6% year-on-year growth. This report card is not easy to come by, and it is also quite eye-catching.

Under the support of the policy of "stabilizing foreign trade", China's textile and clothing industry has withstood the huge impact of the epidemic. Since April, the textile industry has achieved growth for nine consecutive months, and clothing has reversed since August. Textile and clothing exports have achieved growth for five consecutive months, directly driving the overall export growth of the national goods trade by 1 percentage point, which has become an important driving force to promote the growth of national goods trade.

The steady release of export competitiveness benefits from the continuous improvement of consumption demand in overseas markets, but the return of orders, more importantly, the huge "magnetic attraction" formed by the stable industrial chain supply chain system of domestic textile industry also reflects the industrial practice of deep adjustment and improvement of development quality of China's textile industry.

In recent years, the export of textile and clothing has been growing for five consecutive months. With the recovery of global economy, the advantages of concentrated industrial chain of China's textile industry and rich upstream and downstream supporting facilities will become an important driving force to promote the growth of national trade in goods, and will also drive the demand for textile raw materials such as polyester filament. The trade settlement between China and the United States adds a heavy weight, and the domestic textile market is still bullish after the festival.

In a word, the farce of trade war launched by the United States lasting more than two years is expected to come to an end. During this period, the price fluctuation of cotton, cotton yarn and polyester has brought great influence on China's textile industry. In recent years, the domestic bulk textile raw materials have seen a straight-line pull up the market, and the positive effect is obvious. From the analysis of the current development trend of Sino US trade negotiations, things are developing in a good direction. I believe there will be a good result in the future. As for the new U.S. government's reassessment of Sino US relations, the number of repairs should depend on the performance of the United States in the next step. It must be pointed out that this can not be forced to buy and sell, competitive not to sell, uncompetitive apportionment. After all, in the two years of the trade war, China's foreign trade is still developing by leaps and bounds.